Weekly Commentary on China Containerized Transportation

Liu+Zijia

In the week ending June 12， China export box transport market sees demand stable overall. As the repeated expansion of capacities in the oceangoing services that include the Europe and America ones， decreasing freight rates tends to be the new trend on the whole market. On June 12， China （Export） Containerized Freight Index （CCFI） quotes 851.4 points， down by 1.2 percent against last week， and Shanghai Export Containerized Freight Index （SCFI） has a week on week decreases of 6.8 percent to 581.25 points.

Cargo volume keeps unchanged in the Europe service， plus the expansion of tonnage recently， the oversupply of capacity goes worse， and the average slot utilization rate falls to be 80% about. Most box liners have to reduce freight rate in order to lock cargo resource， leading the spot rate on a fresh low level， with the average slot utilization declining to be around 85 percent， some even at 70 percent. Spot rate keeps downward. On June 12， freight rates in the services from Shanghai to the Europe and Mediterranean （covering seaborne surcharges） quote USD243 and USD312 per TEU， diving by 14.4% and 17.7% from one week ago respectively， both break a few low records.

In the North America service， the transport demand keeps increasing as that in last month， but at a slower pace. The average slot utilization rate  in the USWC service slides to be below 90 percent， and that in the USEC service stays between 90 percent and 95 percent . Spot rate keeps on the downward trend as that in last week， with some even lower. On June 12， freight rates in the services from China to USWC and USEC （covering seaborne surcharges） quote USD1341 and USD3004 per FEU， falling by 7.3% and 3.6% from last week respectively.

In the Persian Gulf/Red Sea service， cargo volume keeps stable this week， and the average slot utilization rate hovers around 85%. However， as box liners intend to increase new tonnages in the second half of this month， most box liners have to delay freight rate increase plan， and spot rate declines as before. On June 12， freight index in the China—Persian Gulf/Red Sea service quotes 854.25 points， having a slight slip of 0.3% comparing with that last week.

Transport demand keeps declining in the Australia New Zealand service， the average slot utilization rate slides to be around 75%， with spot rate diving. On June 12， freight rate in the Shanghai Australia New Zealand service （covering seaborne surcharges） quotes USD306/TEU， slipping by 11.6 percent against one week ago.endprint

In the South America service， impacted by the weak economy in the reception， transport demand has no improvement， and the average slot utilization rate stays around 80%， some even below 80%. Most box liners choose to extend freight rate increase plan from mid June， causing spot rate slip， with that in the east coast of this service around USD350 per TEU， and that in the West coast of this service at USD200 per TEU. On June 12， freight index in the China—South America service falls by 9.8% from one week ago to 431.47points.

（Please contact the Information Dept of SSE for more details.）

SHIPPING EXCHANGE

BULLETIN

TOTAL EDITION： 937

23/6/2015

CONTENT FOR THIS WEEK

?Zhoushan Shipping Companies， the Mirror of

Whole Chinese Shipping Ones

?Deqin Enterprise on Its Way of Integration

?Sainty Marine Corporation Ltd.Is Experiencing

Tough Times

?Ship Assets Securitization in China Is Breaking

?Rough Integration for Hubei Ports

?Navios Group Buys Vessels from HSH for a Second

Timeendprint